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Forex Signal (Friday November 18, 2011 NY TIME 7:00am EDT) – CA Core CPI m/m

Discussion in 'Current Forex Trading Signals' started by Stavro D'Amore, Nov 17, 2011.

  1. Stavro D'Amore

    Stavro D'Amore Former FPA Special Consultant

    Jul 29, 2011
    Likes Received:

    All our last trade of the week has arrived, please see my trade plan below.

    CA Core CPI m/m
    Forecast 0.2%
    Previous 0.5%
    Pair to trade: USD/CAD

    Numbers we need: BUY USD/CAD 0.0%
    SELL USD/CAD 0.4%

    Economical Impact: Critical
    Typical Result: Good for currency
    Occurrence: monthly, about 20 days after the month ends

    About our Triggers:
    CA Core CPI is forecasted to arrive at 0.2%. We are looking for a deviation of 0.2% on this trade. If we get 0.0% or lower I will look to enter a LONG position on USD/CAD and if we get 0.4% or greater I will go SHORT on USD/CAD. Should this report be triggered, we can expect to see about 50pips on the initial spike. We also have CPI m/m due to come out the same time and I cannot see this being a conflict.

    NOTE: we are trading Core CPI m/m

    Felix Description
    Indicators descriptions

    What is it? Why does the market care?
    The Core Consumer Price Index (CPI) measures the changes in the price of goods and services excluding food and energy. The CPI measures price change from the perspective of the consumer. It is a key way to measure changes in purchasing trends and inflation in Canada.

    Consumer prices account for a majority of overall inflation. Inflation is important to currency valuation because rising prices lead the central bank to raise interest rates out of respect for their inflation containment mandate. The common way to fight inflation is raising rates, which may attract foreign investment.

    A higher than expected reading should be taken as positive/bullish for the CAD.
    A lower than expected reading should be taken as negative/bearish for the CAD.

    Method I use to trade this:
    Stavro D’Amore Trading Method

    I will look for a 50% retracement in the original spike before entering a trade; I will close half my position as soon as I hit the original high point of the first initial spike and place a SL at entry price. My TP level would be just before a resistance level or if the chart decides to form a support level, looking at a 15 minute chart time frame.

    I do recommend spike trading as an option if you are using a reliable broker and an Auto clicker.

    Historical Chart and Data for CA Core CPI m/m

    All the best

    Stavro D’Amore
    #1 Stavro D'Amore, Nov 17, 2011
    Lasted edited by : Sep 8, 2016
  2. Danimal

    Danimal Recruit

    Nov 18, 2011
    Likes Received:
    News Trading

    Thanks Stavro - just stumbled upon FPA and your post - all really good stuff so I signed up to the forum. Hope responding here is acceptable.

    I just wondered if you could help me with some kind of average pip count in terms of profitability on the news trading - how have you guys done month on month based on the news advice that you post here?

    Or perhaps you could direct me to a thread that covers the same.

    - just be good to know so that I can sort out some kind of 'news trading bank' as it is not currently the way that I trade.

    Many thanks

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